The mood of German consumers has apparently deteriorated again recently. The German Trade Association (HDE) said this on Monday, citing the current HDE consumption barometer for March. The monthly index, which is based on surveys of 1,600 people on consumption-related topics, fell slightly compared to the previous month, after having increased for three months in a row.
“Continued uncertainties appear to continue to dampen consumer optimism,” the industry organization admitted. “A noticeable recovery in private consumption is therefore not in sight.”
Those surveyed were more pessimistic about general economic developments than in February. “Since the upswing announced by the federal government has not yet been felt, consumers remain uncertain,” explained the HDE. In addition, the “very volatile economic environment due to US tariff policy” is putting pressure on the mood. Consumers were also less confident about their own income development than in the previous month.
The propensity to buy has fallen slightly compared to February
Given the gloomy outlook, the propensity to buy fell slightly. At the same time, the desire to invest savings also decreased. “The fact that consumers want to invest less in consumption and save less in the coming months is due to more pessimistic income expectations,” explained the association.
The medium-term prospects for local retail are correspondingly sobering. “Against this background, no increase in private consumption and overall economic growth is expected in the coming weeks and months,” summarized the HDE.
